Keep It Simple, Stupid: The No. 1 Indicator Most Traders Miss

The Air Force has a great saying I’ve grown to love.

It’s “K.I.S.S.”

Or: “keep it simple, stupid.”

In life and in trading, people tend to overcomplicate things.

A great example actually comes back to my days in the Air Force when I was living in an underground bunker in Nebraska.

My commanding officer ordered all of us engineers into a room to find a solution to a problem. The problem was that if a nuclear bomb ever went off, it would trigger an electromagnetic pulse that would cut off our standard walkie talkies. If that happened, we wouldn’t be able to communicate with the guys up top if all hell were to break loose.

My solution?

You’ll never guess … but it was a $30 baby monitor.

Yes, a baby monitor.

As you can imagine, my peers were a little puzzled.

As I began to explain that a baby monitor came equipped with a plastic transmitter capable of surviving a blast from an EMP, and that we could easily rig it to allow for two-way communication, some of them started to get it.

They realized it was a simple solution to a complicated problem.

But as is typical in a bureaucratic setting, saving money wasn’t at the top of their priority list.

In fact, my commanding officer said he didn’t want to rely on a “children’s device” in an emergency situation.

So, the Air Force opted to spend millions of dollars to develop a high tech solution they liked better.

Meanwhile, a $30 baby monitor would have worked just fine.

I see the same thing happen in the investing world all the time…

Traders spend all their energy focusing on the way things “should” be rather than the way things are. In doing so, they overcomplicate things when a simple solution works just fine.

Now, I can’t entirely blame them…

Wall Street — pompous and arrogant as they are — trains its analysts to scour over every piece of information they can get their hands on.

They want to leave no stone unturned and cover all their bases.

It sounds good in theory.

But it doesn’t work.

What ends up happening is they become bogged down with information overload. They become unable to separate the wheat from the chaff.

This comes back to the principle of ONE I told you about yesterday.

While Wall Street focuses on everything … I’ve dedicated my career to finding the ONE thing that guarantees with the highest degree of certainty which direction a stock is about to move.

I call them “profit windows.”

It’s a simple term for a simple indicator, you can see below at the bottom of this stock chart.

You see the indicator circled in green at the bottom left … and how it is circled in red on the bottom right?

This is an example of an actual profit window we found in the beta test for our Precision Profits strategy.

The stock was Nation Beverage Corporation. On May 21, the indicator popped above the orange line indicating that a profit window was opening up and the stock was about to jump.

So my team immediately sent an email alerting our beta testers, and recommend getting in to the play. Then when the window closed, we sent another email telling them to get out for a 200% gain.

It’s that simple.

It happened again in Carnival Corporation.

On November 5 of last year, a profit window appeared leading us to recommend the trade. We sent the beta testers an email … and two months later, they would have had the chance to close that one out for a 145% gain.

I’ll show you one more.

This one happened in Toro.

Toro was showing signs it was about to spike. After closely monitoring it for weeks, the indicator — the profit window — finally opened. You can see it circled in green. We followed up with my beta testers on a weekly basis until the profit window finally closed. Then on that day, my team sent them an email telling them to get out for a 106% gain.

We’ve seen dozens of examples just like these.

In fact, in the last three years, we’ve been beta testing this profit window strategy … we have closed out 31 triple digit winners.

Take a look at the chart on the left for proof. The top line is the S&P 500. It has gains 34% over the least three years.

The gains listed under it are some of the winners made with our strategy … and they typically come within two to three weeks!

Of course, not every gain was a big winner like this. We’ve seen smaller gains such as 42% on Hanebrand, 55% on Proctor & Gamble, 69% on Outerwall and many other double digit winners as well.

Now I’m sure you’re wondering…

If this profit window strategy is so simple … how do most traders miss it?

This one also comes back to human error.

I would even say human EGO.

You see, not only do traders make the mistake of focusing on too many things…

They also make the mistake of trying to find the next big thing.

Like bitcoin: Up 1,000% this year.

Or marijuana: Small stocks that post huge gains of 10,000% or more in a week.

Or the Nasdaq: Up 26% this year alone (three times the long-term average) with technology stocks going absolutely berserk.

If your style is to follow the latest “fad,” then by all means … follow the latest trend.

But in my 30 years in the business, I’ve watched trends come and go. Fads fade. And I’ve seen countless traders and investors holding a big bag of cash on the latest fad … only to find the bottom fell out overnight as the market crashed.

I’m telling you, you don’t need to do all that.

Because my followers have had the chance to make serious money on large, established companies like John Deere, Microsoft, Tyson, Verizon, Scott’s Miracle-Gro, Intel, Kohl’s, Ford, General Electric — other big name companies that continue to throw off one profit window after the next … pointing us to huge gains .

Now of course, nothing in the market is guaranteed — but I believe my data speaks for itself.

Take a look at the charts below for poof.

This is a 156% gain on Intel…

A 207% gain on Big Lots…

A 129% gain on Cedar Fair…

A 206% gain on Vail Resorts…

And other big, explosive gains that have allowed my beta testers the chance to see 6,008% in total winning gains over the last three years.

And on December 7, You’ll Have the Opportunity to Join Them

Jeff Yastine and I are working hard to put the finishing touches on our presentation for you this coming Thursday.

The Precision Profits Investment Summit will put everything I’ve shown you here into action … showing you how you can take advantage of these unique profit windows to fast, consistent profits of 100% or more … over and over and over again.

I hope you’re excited.

Tomorrow I’m going to give you a closer look behind my strategy … including a simple mechanism I use that DOUBLES our chance of success, allowing us to target the highest possible gains in the greatest amount of stocks possible.

If you’d like to catch up on any of the emails Jeff and I have sent you over the last few days, head over to www.PrecisionProfitsLive.com.

And don’t forget to tune in Thursday, December 7 to watch our live Precision Profits Investment Summit at 1 p.m. EST when it airs.

Regards,

Mike Carr, CMT
Editor, Precision Profits